THE century-long tradition of the Times Square ball dropping and the sounds of Frank Sinatra's &quot;New York, New York&quot; have ushered in 2012 in New York City.

The Midtown Manhattan square was filled from the early hours of Saturday morning as crowds secured their position to watch the festivities, including performances by Lady Gaga and Justin Bieber.

The iconic ball made its 23m drop at midnight, as it has each New Year's Eve since 1907, watched by a crowd of almost a million. The countdown was led by Lady Gaga and New York City Mayor Michael Bloomberg.

NYE in LondonSource:AFP

Five hours earlier in London, about 250,000 people lined the Thames near the Houses of Parliament and on Southbank to celebrate the beginning of a year that will bring the Olympic Games to the city.

Moving south to Brazil soon afterwards, about two million white-clad partygoers - both Brazilians and foreign tourists - celebrated the New Year on Rio de Janeiro's Copacabana beach, watching a spectacular "green" fireworks extravaganza championing sustainability.

NYE in BrazilSource:AFP

Residents of Samoa and Tokelau were the first to ring in 2012, after skipping a day by jumping west across the international dateline. They were followed shortly after by New Zealand, which marked the end of 2011 with a massive fireworks display over Auckland.

In Sydney, fireworks launched from barges exploded high above Sydney Harbour and the city's iconic opera house, lighting the night sky with a kaleidoscope of colour.

NYE in JapanSource:AFP

As New Year's revelry worked its way west, people in Japan - which saw a year marked by a devastating tsunami and nuclear disaster - visited shrines and temples to offer prayers for the new year. In Tokyo, celebrations were muted.

"I can't say Happy New Year as I don't feel happiness," said Yuji Takahashi, one of about 1000 nuclear refugees living in a 36-storey Tokyo tower block, according to AFP.

In Hong Kong, the city's harbour was lit up by a barrage of fireworks fired from several of its iconic buildings, delighting partygoers crammed on to the waterfront and in pleasure boats.

In the Philippines, where devastating floods this month washed away entire villages, a somber mood laid over the New Year holiday. A normally raucous event, this year "our countrymen are still reeling from the effects of the storm, especially those who have lost family members," Civil Defense Chief Benito Ramos told AFP.

Parties and festivities took place around India, but in Mumbai, the high court turned party pooper by ruling live music at hotels, bars and restaurants must stop at 1:30am, The Times of India reported.

NYE in EgyptSource:AFP

In Egypt, activists held a candle-light vigil in Cairo's Tahrir Square on New Year's Eve to commemorate those who died in the uprising that toppled President Hosni Mubarak in February.

The eurozone crisis loomed large in continental Europe. Italian President Giorgio Napolitano delivered a stark New Year's address calling on the nation to make sacrifices to "prevent the financial collapse of Italy," while in Madrid, Spaniards gathered in the Puerta del Sol - the square that became a focal point for the "indignant" protest movement.

"Today is a day to forget the crisis," said Luis Zorrilla, a 46-year-old teacher as he celebrated, adding that in the New Year state employees like he and his wife would have to "cope with a difficult situation."

Russia's Far Eastern regions of Chukotka, Kamchatka and Magadan - eight hours ahead of Moscow - were the first parts of the country, and of Europe, to see in the New Year, AFP reported.

Russian state news agencies reported that among the first revelers in 2012 were border guards on Ratmanov island in the Bering Strait that lies just four kilometres from US territory across the international dateline.

NYE in RussiaSource:AFP

In Moscow, thousands gathered in Red Square for another massive firework display that sent rockets 140m into the midnight sky above St Basil's Cathedral, but the sale of all alcohol was banned in a bid to prevent the revelry getting out of hand.

Another spectacular display lit up the night sky in Berlin, with partying at the iconic Brandenburg Gate, while in Paris people flocked to the Champs-Elysees.

In the heart of Vienna the New Year was rung in by the great bell of Saint Stephen's Cathedral, followed by the strains of the Blue Danube Waltz.

In Amsterdam, revelers watched the first "kiss" between two giant inflatable puppets representing a Dutch boy and girl, which "walked" towards each other as the seconds ticked down to 2012.